BofA/Merrill Lynch Downgrades Gigamon (GIMO) to Underperform

BofA/Merrill Lynch downgraded Gigamon (NYSE: GIMO) from Neutral to Underperform with a price target of $11.00 (from $23.00) following Q2 negative pre-announcement.

Analyst Tal Liani notes this is the second negative preannouncement in a row for Gigamon. With guidance for gross margins and operating expenses unchanged, this suggests lower operating and net margins overall.

The firm cut FY14/15 EPS estimates to $0.09/$0.23 down from $0.33/$0.57.

For an analyst ratings summary and ratings history on Gigamon click here. For more ratings news on Gigamon click here.

Shares of Gigamon closed at $18.18 yesterday.

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